Accounting Policies of Lloyds Metals & Energy Ltd. Company

Mar 31, 2015

A) System of Accounting

These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis except for certain financial
instruments which are measured at fair values. GAAP comprises mandatory
accounting standards as prescribed under Section 133 of the Companies
Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts)
Rules, 2014, the provisions of the Act (to the extent notified).
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy
hitherto in use.

B) Fixed Assets

i) All fixed assets are valued at cost net of Cenvat unless if any
assets are revalued and for which proper disclosure is made in the
Accounts.

ii) In the case of ongoing projects, all pre-operative expenses for the
project incurred upto the date of commercial production are capitalized
and apportioned to the cost of respective assets.

C) Depreciation

Depreciation on all the assets has been provided on Straight Line
Method ("SLM")as per Schedule II of the Companies Act, 2013.
Assets individually costing Rs.5,000 or less are depreciated fully in the
year of purchase.

D) Inventories

The general practice adopted by the Company for valuation of inventory
is as under

*Material and other supplies held for use in the production of the
inventories are not written down below cost if the finished goods in
which they will be incorporated are expected to be sold at or above
cost.

E) Investments

Investments are valued at cost of acquisition, which includes charges
such as Brokerage, Fees and Duties.

F) Expenditure during construction period

Expenditure incurred on projects under implementation are being treated
as pre-operative expenses pending allocation to the assets which are
being apportioned on commencement of commercial production.

G) Excise Duty

The Excise duty payable on finished goods dispatches is accounted on
the clearance thereof from the factory premises. Excise duty is
provided on the finished goods lying at the factory premises and not
yet dispatched as at the year end as per the Accounting Standard 2
"Valuation of Inventories"

H) Customs Duty

Customs Duty payable on imported raw materials, components and stores
and spares is recognized to the extent assessed by the customs
department.

I) Foreign Currency Transaction

Foreign currency transactions during the accounting year are translated
at the rates prevalent on the transaction date. Exchange differences
arising from foreign currency fluctuations are dealt with on the date
of payment/receipt. Assets and Liabilities related to foreign currency
transactions remaining unsettled at the end of the year are translated
at the year end rate. The exchange difference is credited / charged to
Profit & Loss Account in case of revenue items and capital items.

J) Provision for Gratuity

Provision for Gratuity is made on the basis of actuarial valuation
based on the provisions of the Payment of Gratuity Act, 1972.

K) Leave Salary

Provision is made for value of unutilized leave due to employees at the
end of the year.

L) Customs Duty Benefit

Customs duty entitlement eligible under pass book scheme / DEPB is
accounted on accrual basis. Accordingly, import duty benefits against
exports affected during the year are accounted on estimate basis as
incentive till the end of the year in respect of duty free imports of
raw material yet to be made.

M) Amortization of Expenses

i) Equity Issue Expenses :

Expenditure incurred in equity issue is being treated as Deferred
Revenue Expenditure to be amortized over a period of ten years.

ii) Preliminary Expenses :

Preliminary expenses are amortized over a period of ten years.

iii) Debenture Issue Expenses :

Debenture Issue expenditure is amortized over the period of the
Debentures.

N) Impairment of Assets

The Company determines whether a provision should be made for
impairment loss on fixed assets (including Intangible Assets), by
considering the indications that an impairment loss may has occurred in
accordance with Accounting Standard - 28 "Impairment of Assets".
Where the recoverable amount of any fixed assets is lower than its
carrying amount, a provision for impairment loss on fixed assets is
made.

O) Revenue Recognition

Sales/Income of contracts/orders are booked based on work billed.
Sales are net of sales return & trade discounts.

P) Contingent Liability :

1 Unprovided Contingent Liabilities are disclosed in the accounts by
way of notes giving the nature and quantum of such liabilities.

Mar 31, 2013

A) System of Accounting :

The financial statements are prepared and presented under the
historical cost convention on the accrual basis of accouting in
accordance with accounting principal generally accepted in india and
comply with the Accounting Standards notified under sub- section (3C)
of section 211 of the Companies Act, 1956 and the relevant provisions
of the Companies Act, 1956.

B) Fixed Assets :

i) All fixed assets are valued at cost net of Cenvat unless if any
assets are revalued and for which proper disclosure is made in the
Accounts.

ii) In the case of ongoing projects, all pre-operative expenses for the
project incurred up to the date of commercial production are
capitalized and apportioned to the cost of respective assets.

C) Depreciation :

Depreciation on all the assets has been provided on Straight Line
Method as per

Schedule XIV of the Companies Act, 1956.Lease hold land will be
amortized on the expiry of Lease Agreement.

D) Inventories :

The general practice adopted by the company for valuation of inventory
is as under :

-Material and other supplies held for use in the production of the
inventories are not written down below cost if the finished goods in
which they will be incorporated are expected to be sold at or above
cost.

E) Investments :

Investments are valued at cost of acquisition, which includes charges
such as Brokerage, Fees and Duties.

F) Expenditure during construction period:

Expenditure incurred on projects under implementation are being treated
as pre-operative expenses pending allocation to the assets which are
being apportioned on commencement of commercial production.

G) Excise Duty :

The Excise duty payable on finished goods dispatches is accounted on
the clearance thereof from the factory premises. Excise duty is
provided on the finished goods lying at the factory premises and not
yet dispatched as per the Accounting Standard

2 "Valuation of Inventories"

H) Customs Duty :

Customs Duty payable on imported raw materials, components and stores
and spares is recognized to the extent assessed by the customs
department.

I) Foreign Currency Transaction :

Foreign currency transactions during the accounting year are translated
at the rates prevalent on the transaction date. Exchange differences
arising from foreign currency fluctuations are dealt with on the date
of payment/receipt. Assets and Liabilities related to foreign currency
transactions remaining unsettled at the end of the year are translated
at the year end rate. The exchange difference is credited / charged to
Profit & Loss Account in case of revenue items and capital items.

J) Provision for Gratuity :

Provision for Gratuity is made on the basis of actuarial valuation
based on the provisions of the Payment of Gratuity Act, 1972.

K) Leave Salary :

Provision is made for value of unutilized leave due to employees at the
end of the year.

L) Customs Duty Benefit :

Customs duty entitlement eligible under pass book scheme / DEPB is
accounted on accrual basis. Accordingly, import duty benefits against
exports affected during the year are accounted on estimate basis as
incentive till the end of the year in respect of duty free imports of
raw material yet to be made.

M) Amortization of Expenses :

i) Equity Issue Expenses :

Expenditure incurred in equity issue is being treated as Deferred
Revenue Expenditure to be amortized over a period of ten years.

ii) Preliminary Expenses :

Preliminary expenses are amortized over a period of ten years.

iii) Debenture Issue Expenses :

Debenture Issue expenditure is amortized over the period of the
Debentures.

N) Impairment of Assets :

The company determines whether a provision should be made for
impairment loss on fixed assets (including Intangible Assets), by
considering the indications that an impairment loss may has occurred in
accordance with Accounting Standard - 28 "Impairment of Assets".
Where the recoverable amount of any fixed assets is lower than its
carrying amount, a provision for impairment loss on fixed assets is
made.

O) Revenue Recognition :

Sales/Income of contracts/orders are booked based on work billed. Sales
are net of sales return & trade discounts.

P) Contingent Liability :

Unprovided Contingent Liabilities are disclosed in the accounts by way
of notes giving the nature and quantum of such liabilities.

Mar 31, 2010

A) System of Accounting :

The financial statements are prepared under the historical cost
convention and comply in all material aspects with the applicable
accounting principles in India, Accounting Standards notified under
sub-section (3C) of section 211 of the Companies Act, 1956 and the
relevant provisions of the Companies Act, 1956.

B) Fixed Assets:

i) All fixed assets are valued at cost net of Cenvat unless if any
assets are revalued and for which proper disclosure is made in the
Accounts.

ii) In the case of ongoing projects, all pre-operative expenses for the
project incurred upto the date of commercial production are capitalised
and apportioned to the cost of respective assets.

C) Depreciation:

Depreciation on all the assets has been provided on Straight Line
Method as per Schedule XIV of the Companies Act, 1956.Lease hold land
will be amortised on the expiry of Lease Agreement.

D) Inventories:

The general practice adopted by the company for valuation of

inventory is as under :

Raw materials *At lower of cost and net realisable value.

Store & spares At cost (weighted average cost)

Work in process : At cost

Finished goods At lower of cost and net realisable value.

(Also refer Accounting Policy G) Traded goods At cost

"Material and other supplies held for use in the production of the
inventories are not written down below cost if the finished goods in
which they will be incorporated are expected to be sold at or above
cost.

E) Investments:

Investments are valued at cost of acquisition, which includes charges
such as Brokerage, Fees and Duties.

F) Expenditure during construction period:

Expenditure incurred on projects under implementation are being treated
as pre-operative expenses pending allocation to the assets which are
being apportioned on commencement of commercial production.

G) Excise Duty:

The Excise duty payable on finished goods dispatches is accounted on
the clearance

thereof from the factory premises. Excise duty is provided on the
finished goods lying at the factory premises and not yet dispatched as
per the Accounting Standard 2 "Valuation of Inventories"

H) Customs Duty:

Customs Duty payable on imported raw materials, components and stores
and spares is recognised to the extent assessed by the customs
department.

I) Foreign Currency Transaction:

Foreign currency transactions during the accounting year are translated
at the rates prevalent on the transaction date. Exchange differences
arising from foreign currency fluctuations are dealt with on the date
of payment/receipt. Assets and Liabilities related to foreign currency
transactions remaining unsettled at the end of the year are translated
at the year end rate. The exchange difference is credited / charged to
Profit & Loss Account in case of revenue items and capital items.

J) Provision for Gratuity :

Provision for Gratuity is made on the basis of actuarial valuation
based on the provisions of the Payment of Gratuity Act, 1972.

K) Leave Salary :

Provision is made for value of unutilised leave due to employees at the
efid of the year.

L) Customs Duty Benefit:

Customs duty entitlement eligible under pass book scheme / DEPB is
accounted on accrual basis. Accordingly, import duty benefits against
exports effected during the year are accounted on estimate basis as
incentive till the end of the year in respect of duty free imports of
raw material yet to be made. .-.Â«-

M) Amortisation of Expenses:

i) Equity Issue Expenses : - '

Expenditure incurred in equity issue is being treated as Deferred
Revenue Expenditure to be amortised over a period of ten years. ii)
Preliminary Expenses :
.' Preliminary expenses are; amortised over a period often
years. iii) Debenture Issue Expenses:

Debenture Issue expenditure is amortised over the period of the
Debentures.

N) Impairment of Assets:

The company determines whether a provision should be made for
impairment loss on fixed assets (including Intangible Assets), by
considering the indications that an impairment loss may have occurred
in accordance with Accounting Standard - 28 "Impairment of Assets".
Where the recoverable amount of any fixed assets is lower than its
carrying amount, a provision for impairment loss on fixed assets is
made.

O) Revenue Recognition:

Sales/Income in case of contracts/orders spreading over more than one
financial year are booked to the extent of work billed. Sales include
export benefits & net of sales return & trade discounts. Export
benefits accrue on the date of export, which are utilized for custom
duty free impprt of material / transferred for consideration.

P) Contingent Liability:

Unprovided Contingent Liabilities are disclosed in the accounts by way
of notes giving the nature and quantum of such liabilities.